Unions poised for Christmas strike over Post Office sell-offs

Plans for a major acceleration in the shift of main post offices to private sector operators are being finalised by the Royal Mail, prompting threats of damaging Christmas strikes from unions.

The move comes as part of a five-year business plan being drawn up by Post Office Limited (POL) managing director Alan Cook.

Cook, who came in to head the loss-making post-office network six months ago, has been reviewing the business and is expected to present his plans at a Royal Mail group board meeting on 3 October.

His key measures include the introduction of new products to maintain the business's customer base, which is threatened by the 2010 end to the Post Office's card account, which has 4.2 million users. But he will also recommend speeding the transfer of Crown Post Offices - some 500 main post offices - from direct operation by POL to franchisees, such as WH Smith. Internal sources indicate that Cook has talked of a reduction from 500 to a figure 'north of 300' in internal meetings.

Unions are angry at the move, which is not covered by Transfer of Undertakings (TUPE) regulations, which would ensure existing staff are transferred to private sector operators on the same terms as before.

They argue that Crown employees will be offered redeployment to other parts of the business, or voluntary redundancy - terms they say are 'not acceptable'.

The Communication Workers Union (CWU) has opened discussions with POL managers about the terms of transfer to franchises, and is insisting that TUPE be introduced. It is concerned that without it, it will lose members, and is prepared to strike over the issue.

Andy Furey, CWU national officer for Post Office Counters, confirmed that he would ballot his 7,000-strong membership for industrial action over Christmas unless talks delivered an acceptable deal. 'We want the company to engage in meaningful negotiations to find a way to protect Crown offices and jobs.'

Unions are also concerned that Cook's moves will presage a more widespread closure of sub-post offices, which have already been cut back in recent years.

Royal Mail chief executive Adam Crozier pointed out that the £20m a week lost by POL last year was not sustainable, and told a select committee in the summer that, because of the withdrawal of payment of state pensions, this would double this year. He added that five years ago, 60 per cent of POL's revenue came from offering government services, such as benefit payments, but that in two years that would fall to 10 per cent.

Cook told the same hearing that a 'commercially viable network' would comprise 4,000 post offices.